Executive Pay: A socially-oriented distributive justice framework

Research output: Contribution to journalArticle (Academic Journal)peer-review

Abstract

This paper presents an alternative to the market-oriented approach to executive pay. The pay for performance requirement and shareholder ‘say-on-pay’ have not worked as a corporate governance formula for controlling levels of pay for directors of large public companies. The financial press continues to report “excessive” payments. An ethical, socially-oriented distributive justice framework is necessary. This paper explains the problems with the market justice approach and suggests that we need to consider the social and political implications of a growing wealth and income gap. This leads to a different set of requirements that are much broader than pay-for-performance and shareholder power. If the framework is adopted this could lead to an improved corporate governance system as well as a more equal and inclusive society.
Original languageEnglish
Pages (from-to)139-154
Number of pages16
JournalCompany Lawyer
Volume37
Issue number5
Publication statusPublished - 6 May 2016

Keywords

  • executive pay, distributive justice, pay for performance, Rawls

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